I understand that Win 98 disables all USB drivers when booted into safe mode.

I've got a laptop that is somewhat hosed and I've spent enough time trying to fix the issue, so I've decided to just reformat and be done with it.
Only problem is that the issue with the machine is keeping it from booting normally, so safe mode is my only way into the machine.
There's some data that needs to be backed up, but I can't back up to a USB drive and there's no CD writing software installed. I have a CD writer that fits the input bay, but am I wrong in thinking that I won't be able to install any writing software in safe mode as well?

Is there any software that runs under 98 that can be installed/used in safe mode?

Yes, but Win98 doesn't give the option to enable networking in safe mode.

Actually, it looks like I can't do anything with the CD writer...the writer has never been used on this machine, so it has to install the drivers for it before it can be used....something else that's not possible in safe mode.